Adults ‘overestimate retirement discounts’

Many adults may be overestimating what they will receive in retirement, a study has found.

Insurance company Aviva polled 2,030 people and found 25% are relying on discounts and subsidies to make their retirement more affordable.

Furthermore, 23% said they had a good idea of the perks available to them, such as rail travel and spectacles. However, many were unaware those specific incentives were only discounted.

42% were aware of a discount available on council tax, while a further 15% incorrectly thought they won’t have to pay council tax when they retire.

Only adults aged over 65 and receiving pension credit are eligible for discount on council tax.

Other products adults expected to receive for free in retirement include:

social care (15%)

broadband (11%)

water rates (9%)

pet insurance (8%)

package holidays (7%).

25% of adults in retirement said they currently struggle to live off their pension, despite the discounts and subsidies available to them.

Alistair McQueen, head of savings and retirement at Aviva, said:

“Consumers leaning too heavily on incorrect assumptions about subsidies and discounts may be in for an unpleasant surprise when the financial realities of retirement finally dawn.

“The fact some people are depending on fictional discounts to make their retirement more affordable paints a worrying picture of consumers being poorly prepared for the financial demands of retirement.”